Medusa Mining rejects Crosby Capital deal

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A Hong Kong-based investment bank has dropped its AUD$182 million takeover offer for Australian gold explorer Medusa Mining Ltd, Reuters reports.

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The deal between Medusa Mining and Crosby Capital reportedly fell through following a slump in the price of the metal.

In a statement to the Australian stock exchange, Perth based Medusa said that the AUD$ 1.15 a share bid was withdrawn after gold dropped below $AUD750 an ounce.

There were also three additional conditions of the breach which were breached.

Reuters reported on September 23rd that Anglo-Australian gold miner Medusa Mining had described as "inadequate" Hong Kong-based merchant bank Crosby Capital's bid of AUD$182 million.

Medusa Mining Limited ("Medusa" or the "Company") was incorporated on February 5th 2002 and officially admitted to the Australian Stock Exchange on December 23rd 2003, following a successful Initial Public Offering ("IPO") of 12,500,000 shares at 20 cents each.

In October 2004, the Company advised that it was proceeding to negotiate with the Principal Shareholders ("Shareholders") of Philsaga Mining Corporation ("Philsaga"), for the acquisition of Philsaga, a Philippines corporation.